AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE DELAWARE LOTTERY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE

Section 1. Amend § 4803, Chapter 48, Title 29 of the Delaware Code by adding a new definition to read as follows:

“(k) ‘Credit slip’ shall mean the receipt generated by a video lottery terminal when a player is finished playing that particular video lottery terminal.”.

Section 2. Amend § 4815(b)(1), Chapter 48, Title 29 of the Delaware Code by adding the following at the end of the subsection:

“Subject to the recommendations of the Lottery Director, and approval of the Secretary of Finance, a video lottery agent may chose to offer free promotional play to players. The amount of free promotional play permitted shall be recommended by the Lottery Director and approved by the Secretary of Finance. In any one (1) month, this amount shall not exceed 4% of the video lottery agent’s commission from the same calendar month of the preceding year. The amount of money given away as free promotional play and used by players shall not be included in the amounts remaining after all payments to players. These provisions for free promotional play will expire on May 31, 2007.”.

Section 3. Amend § 4815(b)(2), Chapter 48, Title 29 of the Delaware Code by striking the word “and” at the end of subparagraph c., by striking the period “.” and adding “; and” at the end of subparagraph d. and by adding a new subparagraph e. to read as follows:

“e. the funds on each credit slip that has not been presented for redemption within one (1) year from the date the slip is issued.”.

Section 4. Further Amend § 4815(b)(2), Chapter 48, Title 29 of the Delaware Code by deleting “$100,000” as it appears therein and replacing it with “$1,000,000”.

Section 5. Amend § 4819, Chapter 48, Title 29 of the Delaware Code by striking subsection (c) in its entirety and replacing it with the following:

“(c) Video lottery machines shall be connected to the lottery’s central computer system, except when used for promotional tournaments in which players are not required to pay any fee to participate, and shall not be available for play on Christmas, or after 4:00 a.m. on Easter, or between the hours of 6:00 a.m. and 12:00 p.m. on Sundays. Subject to the foregoing, the specific hours of operation for each video lottery agent are subject to the recommendation of the Lottery Director and the approval of the Secretary of Finance.”.

Section 6. Amend § 4820, Chapter 48, Title 29 of the Delaware Code by striking subsection (b) in its entirety and inserting a new subsection (b) to read as follows:

“(b)(1) Upon submission by a video lottery agent of a proposed plan for the lease or purchase of video lottery machines in accordance with procedures to be established by the Director, the Lottery Director shall lease or purchase the number, type and kind of video lottery machines necessary for the efficient and economical operation of the Lottery, or the convenience of the players and in accordance with the plan of the licensee, provided that no more than 2,500 video lottery machines shall be located within the confines of a racetrack property unless the Director recommends up to an additional 1,500 for each racetrack property, and further provided that the Director may recommend the amendment of such plan where the Director finds that such amendments are necessary to increase revenues, provided such amendments do not produce reductions in the overall net proceeds from the video lottery, protect the public welfare or ensure the security of the video lottery, provided that the maximum number of video lottery machines under this subsection shall not include video lottery machines at each racetrack used exclusively for promotional tournaments in which players are not required to pay any fee to participate. Such recommendations by the Lottery Director are subject to the approval of the Secretary of Finance. No more than 30 promotional tournament machines are permissible at each racetrack. The Director’s lease or purchase of video lottery machines under this subsection shall be pursuant to the procedures used for procurement under §§ 6981 and 6982 of this Title.

(2) Each video lottery agent shall pay to the State annual license fees for additional video lottery machines as follows: 2501 to 3000 - $1,100 per machine; 3001 to 3500 - $700 per machine; and 3501 to 4000 - $300 per machine.

(3) Annual license fees as prescribed in paragraph (2) of this subsection shall expire on December 31 of each calendar year and shall be payable no less than thirty days before the commencement of the calendar year.

(4) In the case of any video lottery agent making an initial application for machines subject to the provisions as prescribed in paragraph (2) of this subsection, the basic annual license fee for such initial year specified therein shall be reduced pro rata by the portion attributable to the number of full calendar months of the license year that have expired prior to the issuance of the license and shall be payable within thirty (30) days of receipt of approval from the Secretary of Finance.

(5) No refund of license fees shall be payable for any unexpired term of a license.”.

Section 7. If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to that end the provisions of this Act are declared to be severable.

Section 8. This Act shall be known as the Video Lottery Competitiveness Act of 2006.